Personal ROI

We are really good at negotiating with ourselves. Whenever we are presented with a situation where a choice needs to be made, we often find ways to rationalize how we can go for the option that brings us short-term satisfaction, but may ultimately hurt us in the long-term.

We ask, “Can I do X?” …Can I eat a third cookie? Can I spend $200 on a pair of jeans? Can I start my own business?

The answer to all of these questions- and most other “can” questions- is generally yes. Of course, in order to turn those questions into yeses, you have to make an investment of some sort. If you eat a third cookie but don’t want to add 500 calories to your frame, the investment you have to make is an extra 50 minutes on the treadmill, elliptical, etc. (notice I didn’t say “at the gym”- just being there doesn’t make you healthier!).

If you spend $200 on a pair of jeans, the investment may be that you have to borrow money (never a good idea for something like a pair of jeans) or cut back on your spending in another area of your life.

If you decide to start your own business, there are many emotional, financial, and time investments you need to make in order to launch and sustain it successfully. 

When we are making choices, we become so focused on the “can” part of the equation. And, particularly if the choice we want to make (or know we need to make) is difficult, we often rationalize why a.) we cannot do something about it or b.) convince ourselves that we can do something about it, but without true consideration and willingness to make the appropriate investment to get what we want.

The question we forget to ask after “ Can I do X?” is the really crucial one: “Am I going to like the return on whatever investment I have to make in order for X to happen?”

When we pose the second question to ourselves, the decision-making process becomes a lot easier, and the natural result is making choices that are true to our personal values and overarching goals.

“Can I eat a third cookie?”

Sure. But are you willing to spend an extra 50 minutes working out tomorrow? If the answer is yes, go eat that cookie and enjoy every morsel. If the answer is no, then don’t complain about the extra .14 lbs.

“Can I spend $200 on a pair of jeans?”

You bet. But are you willing to cut back on your entertainment or vacation budget? If the answer is yes, go ahead a buy them. Strut your stuff in them while you’re at it. If the answer is no, assess whether you are OK with being $200 in debt (Hint: you shouldn’t be).

“Can I start my own business?”

Absolutely. The real question is, are you willing to sacrifice those fun nights out to build a company you care about? Are you willing to build the equity through personal capital or fund raising to make it happen? Are you up for the challenge of dealing with the naysayers you’ll inevitably come across on your way to success?

If your answers are all yeses, then get started on that company! I can’t wait to see what a success it’ll be in the future. If your answers were no’s, then enjoy never getting your ideas off the ground.

We all want to answer “yes” to the questions we ask ourselves about what we’re capable of doing. The hardest part for most of us is making an honest assessment of what we have to invest in order to make something happen, and how willing we truly are to make those investments.

Just remember…

If you don’t invest- in your ideas and in yourself, above all- the return will never come.